Home Buying Tips

Home Buying Tips

Quick Tips to Boost Your Credit Score Before Buying a Home

 

If you’re not sure what your credit rating is, or if you already know you could use some help in that area, here are some tips from our professional credit repair agency in Columbus, OH on how to boost your credit score before applying for a home loan. Improving your credit score could get you a lower financing rate and save you thousands of dollars in interest charges throughout the life of your loan. But remember, repairing or improving credit can take time depending on your circumstances. There is no overnight cure, but these tips can help you get started on the right path to good credit:

Become an Authorized User

Our credit repair agency in Columbus, OH knows it’s possible to boost your credit score by becoming an authorized user on someone else’s credit card. If the primary user handles their account responsibly, this could reflect positively on your rating. But be advised, the opposite is true as well. 

Monitor Your Credit

There are a number of websites that offer free credit score reports and Columbus-based banks that offer free credit reporting services to their customers. You can also obtain a free credit report once a year from each of the three major credit reporting agencies through AnnualCreditReport.com. \ It’s important to know what your score is and why, and if you notice anything that isn’t accurate, you can file a dispute to get it resolved. Look for reasons your credit isn’t ideal, identify areas you need to improve, and develop a plan to help you reach your goal.

Debt Transfers

Several months before shopping for a mortgage in the Columbus area, boost your credit score by looking for 0% introductory APR credit cards or low APR personal loans. Transfer all, or some, of your debt. This can save you money on interest and help you manage high-interest debt. 

Pay Bills on Time

Paying your bills on time every month goes a long way with credit reporting agencies. If you are the type of person who tends to easily forget things, make sure paying your bills on time isn’t one of them. Get organized with a calendar or dated filing system and set reminders to pay your bills at least a week before they’re due. You will reap the rewards with a better credit score! 

Secure Revolving Debt and Pay Off Each Month

It may sound counterintuitive, but using credit cards can actually help your credit score. Consider securing a few credit cards with low spending limits and charge everyday expenses such as groceries or gas. The secret is to pay off the entire balance every month to avoid the interest fees, and make sure you are never late making a payment.

Explain Late Payments

Our Columbus-based credit repair agency suggests calling or writing a goodwill letter to your lender to explain any late payments due to income loss or illness. Ask the lender to waive the late fee as a courtesy. Most lenders will allow you to be late once or twice, without charging a late fee or reporting you to a credit agency.

Raise Your Credit Limit

Owning a smaller percent of your overall credit limit looks more favorable, but ask if a hard inquiry will be made. Too many hard credit inquiries before taking out a mortgage could damage your credit instead. If you do raise your credit limit, don’t use that as an excuse to charge more stuff you don’t need. The idea is to have the credit, but have lower debt in comparison.

Follow our credit repair agency in Columbus for tips on how to boost your credit score and soon you will be rewarded with better credit and can be confident when you apply for a mortgage.  You’ll be set to get the best rate and save time over the life of your home loan. If you need more information or would like the help of a qualified credit repair agency in Columbus, contact People First Credit Restoration now.

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During the credit restoration process, we will provide you with information and the education you need to continue raising your credit score.

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